SPY is trading at $742.49 (-1.0%) in pre-market action as the market faces continued pressure from a rotation out of growth and technology sectors.
- The broader index is being dragged lower by a persistent slump in semiconductor and AI names that began on July 17.
- Geopolitical tensions have pushed Brent crude up 3.3% to $90.97 following U.S.-Iran escalations, fueling inflation fears and dampening risk sentiment.
- While softer core PCE data keeps a September Fed rate cut on the table, this positive macro development has not been enough to offset the tech-led weakness.